New Jersey/Suburban Philadelphia Marketplace
The nine properties Cali acquired in New Jersey over the past year for over $370 million totaled more than 2.6 million square fret of space. Caliís most notable 1996 purchase was 1-larborside Financial Center, a nationally renowned 1.9 million square-foot office complex on the Jersey City waterfront. Marked as one of the largest commercial real estate transactions in New Jersey history, the $287 million acquisition epitomized Caliís strategy of being the dominant player in promising markets. In addition to Caliís 600,000 square-foot International Financial Tower office building, the Harborside purchase gave the Company control of 40% of the Class A office space in one of the highest-performing markets in New Jersey. in connection with the Harborside agreement, Cali also acquired 17 acres of land approved for an additional 4.1 million square feet of development.
The Company's purchase of 300 Tice Boulevard in Woodcliff Lake, NJ positioned Cali as the only owner of muli-tenanted Class A office space in that submarket.
Cali also purchased Whiteweld Centre in Woodcliff Lake, a beautifully designed, 230,000 square-foot, 100% leased office building. When combined with the Companyís 50 Tice Boulevard property, it makes Cali Realty the only owner of multi-tenanted Class A office properties in Woodcliff Lake. One Bridge Plaza, a 95% leased 200,000 square-foot office building at the loot of the George Washington Bridge in Fort Lee, was also acquired by Cali in 1996 and is the companyís fifth property in Bergen County.
Other New Jersey properties the company purchased included the prestigious 103 Carnegie Center, in the strong Princeton market, and 222 and 233 Mount Airy Road, located in Basking Ridge in the popular 1-287 corridor submarket. Recently, Cali also acquired an additional property for its Monmouth Shores Corporate Park, when it purchased 1345 Campus Parkway in Wall Township.
In 1996, the company also made significant inroads into a promising new market, suburban Philadelphia. Cali established a strong presence in this top-performing, neighboring market by purchasing three office complexes--Rose Tree Corporate Center, 5 Sentry Parkway, and Airport Business Center--totaling 761,000 square feet of space.
The Robert Martin Transaction
The $440 million acquisition of the Robert Martin Company was the first time Cali combined forces with a longstanding company. The transaction accomplished several objectives for Cali. It increased Caliís property portfolio, which now stands at 11.4 million square feet, by adding 4.1 million square feet of office, office/flex and industrial space in neighboring Westchester and Fairfield counties. The companyís geographic reach now extends across four states, stretching from suburban Philadelphia, through New Jersey, across lower New York State and into Connecticut. Cali now has the strategic advantage of operating in markets that collectively contain more than 250 million square feet of contiguous office space, plus over one billion square feet of industrial space, and provide an abundance of acquisition and growth opportunities for the future. The transaction also gave the company a superb management team with local market expertise and provided Cali with a dominant presence in a real estate market that many industry experts believe will follow the recent recovery of its New Jersey counterpart.
Tracking Cali's Success
In just two and a half years since its initial public offering, Caliís portfolio has grown at a gallop. Caliís original portfolio of 12 properties has increased ten-fold to 123 properties; 2.2 million square feet has grown by more than five times to 11.4 million square feet; and Calfís original tenant base of 230 is now well over 1,100.
Investor Returns/Financial Performance
Widely recognized as a premier REIT by investment analysts and financial media, including The Wall Street Journal, New York Times, Financial Times, U.S. News & World Report and CNBC, Caliís performance for its investors has been remarkable even in the top-performing REIT sector. In a year that saw an S&P 500 return of 23%, a Dow Industrial Avenge return of 27% and a REIT equity index return of 35%, Caliís 1996 total return reached approximately 50% for the second year in a row, making it among the top performing REITs in the country. Since its initial public offering in 1994, Caliís stock has delivered a total return of over 112%.
©Copyright 1997 Black's Guide